What was the value of the right-of-use lease asset for Apricot Lane in 2023?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
LLP Grass Valley, CA February 10, 2025
Sointo Group
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| ASSETS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Current Assets: | 4. | 107 (10 | |||
| Cash and cash equivalents | S | 85,129 | $ | 186,678 | |
| Marketable securities | 113,379 | 161,923 | |||
| Franchise fees receivable | 222,000 | 207,000 | |||
| Franchise royalties and advertising receivable | |||||
| less allowance for doubtful accounts | 72,069 | 95,760 | |||
| Reimbursable franchise costs and other receivab | les | ||||
| less allowance for doubtful accounts | 18,076 | 24,017 | |||
| Prepaid expenses | 20,201 | 22,346 | |||
| Current portion of notes receivable | _ | - | |||
| Total Current Assets | 530,854 | 697,724 | |||
| Furniture, equipment, and vehicles net | 156,003 | 200,976 | |||
| Other Non-current Assets: | |||||
| Security deposit | 2,500 | 2,603 | |||
| Right-of-use lease asset | - | 8,724 | |||
| Notes Receivable, less current portion | 985,265 | 985,265 | |||
| Total Other Non-current Assets | _ | 987,765 |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the value of the right-of-use lease asset in 2023 was $8,724. This figure represents the company's right to use leased assets, which are recorded on the balance sheet.
The right-of-use (ROU) asset reflects Apricot Lane's right to use leased assets over the lease term. It is calculated as the present value of future lease payments, adjusted for any deferred rent liability and lease incentives. This accounting treatment, under ASC 842, aims to provide a more accurate picture of a company's financial obligations and assets related to leasing activities.
For a prospective Apricot Lane franchisee, understanding the right-of-use lease asset is crucial because it reflects the financial obligations tied to property leases. While this specific figure pertains to the company's corporate leases, franchisees will also encounter lease obligations for their store locations. Therefore, it's important for franchisees to carefully consider lease terms and their potential impact on their financial statements.